. Loss sharing rules determine who wins or loses from clearing. Current rules disproportionately benefit market participants … to voluntarily use central clearing. Alternative loss sharing rules can address cross-sectional disparities in clearing …

. Loss sharing rules determine who wins or loses from clearing. Current rules disproportionately benefit market participants … to voluntarily use central clearing. Alternative loss sharing rules can address cross-sectional disparities in clearing …

consider musharaka financing, an Islamic profit and loss sharing contract. First, we show that debt is inferior to equity or …

consider musharaka financing, an Islamic profit and loss sharing contract. First, we show that debt is inferior to equity or …

markets. We show that not all market participants benefit, and some are worse off. Loss sharing rules and their interaction … with market network structure affect who are winners and losers. The loss sharing rule most widely used by CCPs is based on …-sectional differences in loss sharing benefits, and highlight alternative loss sharing rules and centralized trading as potential remedies. …